While the cyber insurance market is seeing more capacity and increased competition, insurers are still battling with the challenge of increasing frequency and severity of claims, according to John Menefee, enterprise cyber lead at Travelers Bond and Specialty Insurance, in a conversation with Carrier Management at Travelers’ New York City office.

“It’s been a soft market for a few years running, and 2025 was a continuation of that,” he said. “There continues to be a lot of capacity, a lot of new players entering the market. Everyone is fighting for market share on new business at a time where there’s been an increase in frequency and severity of claims.”